nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2018‒07‒09
five papers chosen by
Edoardo Marcucci
Università degli studi Roma Tre

  1. Toward a better understanding of elicitation effects in stated preference studies By Christian A. Vossler; Ewa Zawojska
  2. Payment and Provision Consequentiality in Voluntary Contribution Mechanism: Single or Double “Knife-Edge” Evidence? By Jie He; Jérôme Dupras; Thomas Poder; Thomas G. Poder
  3. Taxes and the Location of Targets By Arulampalam. Wiji; Devereux, Michael P; Liberini, Federica
  4. The impact of submarket concentration in the US pharmaceutical industry in 1987-1998 By Francesca Di Iorio; Maria Letizia Giorgetti
  5. Analyzing Decisiveness of Migration Intentions: Social Kinship that Matters By Aubrey D. Tabuga

  1. By: Christian A. Vossler (Department of Economics, University of Tennessee); Ewa Zawojska (Faculty of Economic Sciences University of Warsaw, Warsaw, Poland)
    Abstract: Empirical evidence accumulated over several decades suggests that survey-based welfare measures for public goods can be very sensitive to the format of the value elicitation, e.g., an up-or-down vote or an open-ended willingness-to-pay question. The underlying drivers of these effects remain poorly understood. As myriad formats are employed in practice, this raises concerns for both academics and policymakers. We design and implement a controlled experiment to cleanly test for elicitation effects among a set of four oft-used formats: single binary choice, double-bounded binary choice, payment card, and open-ended. The experiment retains important field context properties (e.g., the funding of a public, environmental good) and varies only the elicitation format, while holding fixed ancillary characteristics of the elicitations (such as framing, decision rule, payment method, and incentive compatibility). We find all formats lead to statistically identical welfare estimates. On one hand, this evidence suggests that variance in design characteristics other than the elicitation format may explain some prior results. On the other, to the extent that characteristics of our elicitations can be mirrored in the field, this offers a pathway for mitigating elicitation effects.
    Keywords: contingent valuation; mechanism design; experiment; voting; elicitation effects; convergent validity
    JEL: Q51 C92 D82 H41
    Date: 2018–06
  2. By: Jie He (Département d'économique, École de gestion, Université de Sherbrooke); Jérôme Dupras (UQO); Thomas Poder; Thomas G. Poder (Centre de Recherche du CHUS, Université de Sherbrooke)
    Abstract: We conducted a field stated preferences survey to understand the joint and separate effects of payment and provision consequences on hypothetical bias associated with voluntary contribution. Based on four treatment groups and a contingent-ranking willingness to pay (WTP) question, this paper provides some support for “single” knife-edge evidence, which suggests that a respondent facing positive provision consequences will report a significantly higher preference only if the payment consequence is co-presented. For the payment consequence, its negative impact on WTP was independent on the presence of provision consequence; we therefore reject the “double” knife-edge evidence.
    Keywords: Housing taxation, banking, dynamic general equilibrium.
    JEL: E62 G28 H24 R38
    Date: 2018–06
  3. By: Arulampalam. Wiji (Department of Economics,University of Warwick); Devereux, Michael P (Said Business School,Oxford University); Liberini, Federica (ETH Zurich)
    Abstract: We use firm-level data to investigate the impact of taxes on the international location of targets in M & A, allowing for heterogeneous responses by companies. The statutory tax rate in the target country is found to have a negative impact on the probability of an acquisition in that country. In addition, the estimated size of the effect is found to depend on whether (i) acquirer is a domestic or a multinational enterprise ; (ii) the acquisition is domestic or cross-border; and (iii) the acquirer's country has a worldwide or territorial tax system.
    Keywords: Multinational enterprises ; cross-border expansion ; target choice ; corporation income tax ; mixed logit
    JEL: G34 H25 H32 C25
    Date: 2018
  4. By: Francesca Di Iorio (Department of Epolitical Sciences, University of Naples Federico II); Maria Letizia Giorgetti (Department of Economics, Management and Quantitative Methods, University of Milano)
    Abstract: Global market concentration is the result of the interplay of different sub-markets. According to this view, empirical analysis on the role of concentration as an incentive or as a barrier to entry must be conducted on a sub-market level, where the sub-markets are identified as specific technological trajectories. In this paper we investigate the role of 3-digit submarket concentration in the US pharmaceutical sector in 1987-1998. We take into account several sources of potential entry deterrence including the relative company size to the largest incumbent firm and the number of competing products in each submarket. The estimates of a panel logit model show that a concentrated industry at submarket level seems to act like a barrier to entry. The relative company size is not significant while the number of competing products is significantly positive.
    Keywords: submarket concentration, pharmaceuticals, product launches, logit
    JEL: L25 L65 C23 C25
    Date: 2018–06
  5. By: Aubrey D. Tabuga
    Abstract: Analyzing future migration intentions is essential to understanding how migration perpetuates. International migration is such a complex and nuanced phenomenon that those who desire to participate in it go through an elaborate process of intention-formation, planning, and decisionmaking. And yet the literature on migration intentions rarely view it in such manner. Instead, many studies treat migration decisionmaking as a binary stay-or-leave variable. Moreover, the lens more commonly implemented is economic; there is less focus on the social dimensions of migration decisions. This analysis seeks to explain the influence of social networks on the decisiveness to migrate while controlling for the effects of economic forces, subjective perceptions on well-being, and demographic factors. Using information gathered from individuals residing within a village with high migration incidence, this study found that differentiating migrant networks into the degree of association or strength of ties is crucial because different networks have different effects. Furthermore, considering the individuals’ current level in the migration decisionmaking process is also deemed crucial in analyzing the factors that influence the decision. For instance, migrant networks particularly the closest of kin are important in the advanced phase of concrete migration planning, and not in the initial stage. Know more about the results of the study in this paper.
    Keywords: migration, , migration intention, migration decisionmaking, Philippine migration, generalized ordered logit, tie strength, social networks
    Date: 2018

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